find out what is going to happen with the fiscal cliff. i guarantee you. low volume. it is veterans day. happy veterans day. here is neil cavuto. >>neil: forget taxing just the rich to avoid the cliff, are democrats signaling they are willing to throw everyone off the cliff just to make a point? lucky for this guy, he has a parachute. thought is sure about the rest of us. there is no parachute that could hold me but i digress. welcome, everyone, top democratic senator patty murray is saying that she would rather go over the cliff than be stream rolled by republicans either the rip get hit show says or everyone gets hit and talk about hit, a retroactive tax hike never-before-seen in american history likely to make this feeble recovery history happening january 1 and no one will be spared unless they do

something now. democrats insist the pain is temporary vowing to a pass tax cuts? >>guest: year by the middle class putting republicans in the box a game the democrats will win but charles payne says this economy cannot afford it. long before the storms, charles was look at a couple of big subsequent operators players and he was talking about this, the issues like doubling and tripling, and lo and behold this past weekend he is talking about united representals, a huge pop today. this man speaks, buyers come out in droves. good to have you. what are taxpayers going to do? >>guest: they will go away. everyone will be rabbit eared. what they saying is crazy this is like the nuclear option. obviously, the tax hits everyone but obviously it hits the people

who cannot handle it the most. >>neil: where is it to the democrats' advantage? she is not the first but the most recent. where is the benefit to them? >>guest: it is a victory. we hate the rich so much you do all the math, what they talking about extracting from the rich and confiscating from the rich does nothing for spending. >>neil: butting that aside is there a logic that it is scorched earth and we pick up the pieces. >>guest: the logic piggies off the results of the election, the republicans are mean spirited, and they are only out for the rich and they will hammer you so we well let you get hammered and pick up the pieces and inthe ones that pick you up later on and dust you off and save you while the mean democrats rally around. >>neil: they will say it is the republicans who are holding you hostage? >>guest: that is what president obama said on friday. go ahead and pass a few of the other things and only 3 percent of small businesses will be hit

but he forgets to say that the 3 percent, 50 percent generate the jobs and the capitalization. >>neil: he will have a series of meetings before he mets with the congressional leaders and first is the labor leaders. >>guest: it is shaping up to be like the job council, which is big business and academics and unions, and it should only be small business owners, how can you keep dismissing this? he doesn't like any small business. he accident like any small business at $400,000 a year, because they will get crashed. the job council look at those $219 billion, $18 billion, $6 billion, they can handle a hit? they are saying, you know what, i make $23 million a year, i will give. >> few more bucks but what about the true engines of job creation

and the grass roots of america? you cannot punish a husband and wife making $300,000 because they made all the sacrifices and now they are getting --. >>neil: but they will say, well, it is only 3 percent, but you raise a good point, they make up the bulk of the hiring. >>guest: this is a feeble recovery. this is a nation where young people think socialism is better than capitalism and we have 47 million on food stamps we cannot afford to change the narrative or the direction of countries. i don't understand why the first meeting, or to be frank, all should be only small businesses. do not invite the big boys or the unions or the academics. please don't. please. please. please don't. >>neil: charles makes you think and he makes you money. hike now or pay for it late. byron york, he is right, that is the pickle for the grand old

party. republicans, you saying, cannot win no matter what, right? they are in a box. >>guest: they nervous. the problem they see, first, the president won the election. now many candidates campaigned for the white house on the platform of raisings taxes. they realize that. their problem with the fiscal cliff, if they go across, over the fiscal cliff, all the bush tax cuts are allowed to expire, of course the president is going to proposal a bill proposing to bring back all the tax cuts for everyone except the top income group. >>neil: there is for benefit for them to fight this or trying to fine tune a tax hike on the rich? or closing loopholes. >>guest: if the president does, if this happens and the president proposes bringing the tax breaks back for the middle class they find themselves in the position of defending the tax cuts for the highest

brackets, they don't want to do that so what they will try to do is push tax reform which is to do something like mitt romney proposed which is a limit on deductions for higher income earners so the mortgage interest deduction and charitable deduction and other things like that is only partly available to people in the highest incomes. >>neil: would that turn higher taxes than just a simple hike in the rate to the individuals? >>reporter: the republicans want to dig in on the issue of tax rates. but it is unclear whether they could hold on that but you are right. it could turnout that their deduction plan raises taxes more on higher income earners. >>neil: byron, throughout the campaign, i also want to thank you have been an enormous resource for us and you are a brilliant guy when you make me look good that is going the extra time. >>guest: thank you sore were.

>>neil: enormous insight. to hear speaker boehner tell it, republicans have to swallow their pride and just stay in line, and tea party said they made him speaker and better watch how he is speaks. >>guest: why don't we all talk about rather that who getting in line and who is cooperating with who, what is the best thing for our country? wouldn't it be nice to have a leader in washington who said, wait, it is not about just working together for a show but what is best for our country, and, neil, there are very hard decisions to be made and i don't think we should compromise on things that are not good for all of us in america. >>neil: you may feel that way struckly and i have admired the fact you stick to your guns no matter the crosswind but the president is going to claim, elections have consequences and it was close, but i won, and i won despite this call for higher taxes, maybe because of it, and

the rich have to deal. you say, what? >>guest: well, i say, first, just because you win an election, that doesn't noon you get to go off the rails and do what is not good for america because you have some weird agenda. two, talk seriously about what tax cuts are and what they will do. you can take all of the wealth, 100 percent of the wealth, in this country, from everyone making over $250,000 and you are not going to solve the problems we have in this country. >>neil: let me ask you, what would you be happy with? there is this compromise talk of closing loopholes and that might satisfy folks like you who are against the tax rate hike. >>guest: look, let's do what is helpful to the country. we have to address the systematic problems with entitlement programs. >>neil: i understand that. i understand 9 but would you be open to that? apparently speaker boehner is and many in the republican leader are. are you? >>guest: okay let me give you

an example of why --. >>neil: you are not answering me. >>guest: wait, wait, wait, illinois -- back when governor walker in wisconsin was making systematic changes to the state budget and making legitimate and difficult cuts his neighbors in illinois were not. all they did, they said --. >>neil: i know, i know, i know, i know. but would you look at closing the loopholes as a step? >>guest: closing the loopholes that hurt charity service that will hurt the poor? and the weak? and the hungry? >>neil: no, no, no, you are not budging on anything? >>guest: it is not that i will not budge. i want a serious conversation with the president. i will not compromise my child's future and i will not hurt the charities. >>neil: you answered my question. always good to have you. >>guest: are you afraid i am going to leap through and grab you? >>neil: i was.

and new york residents are now taking to the streets. >> more jobs. >> we pay the highest rates in the country out of 50 states and we are treated like we don't exist.

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>>neil: to staten island, the power up for most residents but most homes are destroyed or gone. and now, how families are trying to cope in staten island. >>reporter: it is a difficult situation for the families here. this is a street where you can still see the buildings standing but inside if they have not been gut add lost the homeowners spend the day pulling all of their belongings and the walls down. we have seen volunteers throughout the day pulling out giant piles of debris, the sanitation crews have gone

through this. they pulled up the debris and we can see, i don't know if you can swing around at some of volunteers that were just here a few moments ago helping in the house homeds, and they have plenty of work to do and been work all day. 17,000 people have signed up for fema assistance and they waiting on word how much they will get, how much money the insurance companies will give them. we have seen all sorts of different charity organizations, different food trucks moving through, and, a lost regular people have been down here, the folks in the homes? they are hurting right now but they are grateful for all of the assistance they have been receiving. a tough work out here and a lot more work to come. >>neil: thank you, molly. now to long island despite protests this weekend 74,000 are still without power. two weeks after hurricane sandy. utility official say most will be back up and running by tomorrow but try tell flag to democratic new york state

assemblyman. phil, i guess you still without power and look for answers. how does it stand? >>guest: day 14. the response has been slow and the coordination with the utility companies and the city of new york and other counties and government entities has been poor. >>neil: governor cuomo has been particularly tough on utility companies the last few days saying that this is no excuse for this. but why is it happening? it is just a -- because of bad coordination? >>guest: i give the governor all credit in the world. he is right to hold the utility companies accountable. what i would say is the coordination between the utility companies and the city of new york has been absolutely not existent. not existent. they are not talking to each other, there has been no coordination, and, unfortunately, the people in the secret whose have to suffer. we are in day 14 today, and to

think about being 14 days without power, it is unconscionable. >>neil: a lost areas are without power and more coming on back each day, but i am not blaming you or the governor but could it be a case of throw the utilities under the bus for what has been a bad public response? >>guest: i think the time for accountability is going to come. en agrees that when our families are safe, when the residents in the neighborhood are out of harm's way the time for accountability will come and those who need to be held accountable will. i trust in the governor that we are going to get this right and we will do right when the time is right but for now, there are thousands of people who are still cold at night. there are thousands still hungry. you turn on the tv and there is a rosy picture but living here, final has stopped. we are struggling for the aid and the assistance and i hope to rebuild but it will be long and slow process. >>neil: thank you, sir.

we will be watching. what is the difference between john f. kennedy, remember him, can voterring with -- cavort wia nazi spy and general petraeus cavort with a woman who knew state secrets? military life is different. we've been there. that's why every bit of financial advice we offer is geared specifically to current and former military members and their families. [ laughs ] dad! dad! [ applause ] ♪ [ male announcer ] life brings obstacles. usaa brings advice. call or visit us online. we're ready to help.

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>>neil: nothing grabs headlines quite like a scandal involving the top spy but there could go way beyond the headlines of david petraeus and his lover or lovers because there are fears that she

revealed classified information about the deadly benghazi attack or other things. but i can remember, monica, there were concerns about that with john f. kennedy when he was hanging out or charges were that he was hanging out with a former nazi spy before he became president and then, with close connection of the woman who had a close connection to the mob and there is still word. >> this goes back to the going of time, you think of mati hari, where a target is it up using a parley attractive women. as far as we know this is a consensual relationship but you are correct to say pillow talk, access to e-mails, access to laptops, the guy goes in the shower show has clear access to credit card numbers and bank accounts. we have in idea but the fact that the director of the c.i.a. put himself in such a position where he could be compromised by

someone he thought he could trust is totally outrageous. >>neil: we do know that john f. kennedy got the attention of hoover? >>guest: and kgb. >>neil: but i raise this much, there is concern about loose lips and what is scoffed accidentally, how did that become a big national security issue and why should we worry now? >>guest: remember, the director of the c.i.a. is supposedly the keeper of all of the secrets, what a lot of these guys either may not understand, know, or disregard, is that they are also being watched. they are much bad by their own teams and watched by their own government, and watched by foreign governments. >>neil: but the c.i.a. keeping track of the chief spy's mail, someone is watching guy who is swamping them. >>guest: there are many layers to prevent this from blowing out up. the irony here, and this is why this is a bigger discovery than just this simple affair, because

the f.b.i. was flagged by another woman who said she felt threatened by e-mails and we have a dead ambassador in benghazi who felt threatened over many months put in repeated requests to the administration for added security but he is dead and we have this investigation ongoing. there are many layers to this. >>neil: you fear this could be a fixation following this at the expense of real worries? >>guest: when you have a c.i.a. director or president during the lewinsky situation, a major government official, c.i.a., director, president, you name it, at the very least, is distracted, by a relationship gone awry or a secret relationship, they may not be paying close attention to the nation's business, to our national security, and when you have yourself vulnerable to foreign intelligence agents and inmiles of the united states who could use this information as leverage to access more information our as blackmail you have a serious problem. >>neil: it is still too early

to tell. thank you very much. jennifer is following all of this. jennifer, what have you learned? >>reporter: serious questions being raised whether broadwell had access to information because of her relationship to general petraeus as man can mentioned, and she should not have revealed publicly. at this speech at her school in denver october 26, the same day administration fox reported requests for information from the c.i.a. annex she said this. >> i don't know if you have heard this but the annex had taken a couple of libyan militia members prisoners and they think that the attack on the consulate was an tonight get the prisoners back so that is being vetted. >>reporter: being vetted by who? the c.i.a.? that was not in the official c.i.a. timelines, the implication is the attack on the consequence last was partly a strike again the c.i.a. operation which involved holding and interrogating prisoners at

the annex. we originally reported on october 26, based on conversations with sources would were in touch and debriefed and those were at the annex, and those c.i.a. contractors said they had captured three libyan prisoners who they handed over to the libyan authorities when they fled benghazi. we never knew who the prisoners were or what happened to them and we now have learned the three prisoners may have been held for a few days at the annex prior to the attack and more than just might libyan militia e hold. the c.i.a. denies this and has not had detention authority since jap of 2009 when executive order 13491 was issued. any suggestion that the agency is still in the detention business is uninformed and baseless a separate washington source confirms that the libyan men held at the annex in benghazi could be a possible motive for the attack on the

annex and consulate which was as we now know little more than, not, really a diplomatic facility. >>neil: moraceousous by the minute. thank you very much. in the meantime, power up, what is happening in staten island is not staying in staten island, and these folks are angry and they have had it with clueless politicians. >> i thank the commissioner and the city department of transportation for their hard work in this effort. >> thank the governor for his support. he is a man of his word. >> i thank secretary napolitano for leadership leadership, her dedication and the fact she came here to tour on the ground. [ metal rattling ]

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>>neil: i know i sound like a broken record but the power might, might, might, might, might be up for residents on staten island. the resident knows this firsthand, and is on the phone. how is it for you? >>caller: could be better. >>neil: do you have tower in do you have a home? >>guest: i have been displaced. con-ed said it will be three months before i get electricity and gas. >>imus: flee months? three months?

three months? >>guest: they are afraid because the electricity in the houses, some of the houses, my house is still standing and can be repaired but a lost houses on the block have been demolished from the surge and they are afraid of putting the power on because it will spark a blaze. >>neil: how many are in your situation right no? >>guest: about 100 people in this area that are affected by no electricity. >>neil: what do you think of the response so far to help you folks out? >>caller: the responsibility the government has been nothing. (inaudible) rescue of staten island has been helping out and we have been supporting other neighborhoods in the area, as well. >>neil: what do you think the problem is? i talk to company like you who say that it doesn't reach them

or people are confused who is in charge of what. what is it? >>guest: a lack of organization. and a rescue has electricians and plumbers, and people need power. that is the thing. they are freezing in their homes. >>neil: in your case, and you are talking a few months before you get power, what do you do in the meantime? >>caller: i have an aunt i am staying with but i can only say there for another week because her in-laws from new jersey are here and there are seven people in the house and it is getting hectic and a lot of families are in the same situation. i have to find another apartment, fema has not come by to give me a mortgage or rent for my house and i am waiting on fema pretty much.

and my insurance company, they are lacking. >>neil: there was talk a fema would set up temporary housing or temporary shelters do you know anything about that? >>guest: they have not contacted me and we do not know anything about that here. we are considered the forgotten borough and they just now getting to us and finding out about us. (inaudible) >>neil: that is the latest, that is his house, and the power company does not want to power up because of conditions over the area. now, over the moon, why a bipartisan approach to immigration reform has illegal immigrants cheering and some

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♪ >>neil: after the election the resurrection of bipartisan team of senators breathing new life into a controversial immigration reform plan. >> we need to be firm and fair. self deportation will not work. >> we have a good chance using this blueprint to get something done. >>neil: my next guest like many critics argue that citizenship cannot be a reward for breaking the law. the best seller author of "after america get ready for armageddon " mark, you are saying, no, no, no. >>guest: republicans always get suckered on this. america has the most expensively dysfunctional government on the planet, over half the illegal immigrants are here now arrived

since 9/11, that is to say they broke into a country on code orange, supposedly. so everyone who is having the general 258s gone through at the airport who think that any of that stuff means anything, and there will be any serious enforcement in the graham schumer proposal is deluding themselves. >>neil: they are looking at the latino vote if the last election and they must be reading that as republicans --. >>guest: but the point is people talk about the shifting demographics, a national phenomenon like hurricane sandy. but it is not. it is a conscience policy on the part of the democratic party to basically import votes. the business wing of the republican party things it is importing cheap labor. the democratic party thinks it is importing cheap voters. the republicans are wrong.

and the democrats are right. by the way, if the republicans outreach were to succeed the democrats would simply move on to someone else and say, well, we need more somalis in maine or minneapolis and the republicans are not reaching out for the vote. >>neil: what is the middle ground they should be taking if their view, and i think it is fairly, viewed as being antiminority, what should the posture be? not amnesty, but what? >>guest: my view is you have an immigration policy that is in the interests of the existing citizenry of the united states. i'm here as a guest in this country. your nation was kind enough to invite me in. >>neil: they didn't check with me. >>guest: they didn't. and juan williams, i gather, we were there together and he was said he was happy to see me.

happy to see enforcement with me and no one else. but that is the issue. it is a choice that americans have to make. >>neil: for all those you allude to who have gotten here since 9/11 and i didn't know it was that many, half. what do you do? >>guest: i think the issue here is whether there can be a natural atelevision. -- a natural attrition. it is not abnormal during ellis island, huge numbers of east eastern europeans actually got on the boat and went back. i was at the immigration office a couple of weeks ago and they showed me, someone there, showed me the fee waiver if you apply for a green card or a work permit, or citizenship you are supposed to pay $150 or $200 but the administration as a matter of policy is waiving fees with approved identity groups so think of it from an american

workers' point of view. a guy who cannot afford the $200 fee for a work permit, is he likely to be a net contributor to the united states? or will he join the swollen remarks of dependence? >>neil: but republicans and i appreciate the box they are in, they look heartless to say we cannot keep doing that but they have to find or they feel fran dick and they feel they have to do this stuff. i look at election and the success of rubio, that there is sort of this old bush compassionate approach but i'm not sure they know or i know or anyone knows what that is. >>guest: they have to containing the language. they have to change the language to one in favor of immigration that is a benefit to the united states they can make the case on that. but, basically, the idea that

everyone has some kind of right to come here and if all seven billion on earth settled here there is nothing wrong with that because they believe in family values and they just want to get their share of the american dream that is preposterous. the republicans get suckered on this stuff time and again. if you look at polls, the majority of the american people basically would like a policy a little to the right of where both political parties are at the moment. >>neil: thank you very much. time to check in with dana and what she has going on. i was thinking of your boss, the last republican who made great inroads with latinos. that is a memory now. >>guest: it certainly was but interestingly, that was in 2007 and may 2007 president public gave the first oval office

address on a domestic issue on immigration and it was only three weeks later, the republicans were not there but the democrats figured out a way to kill it. we will have this conversation again and i thought mark made some good points. >>neil: do you think, and maybe the republicans will pursue this, are running with a tail before their legs too frantically. it was close on the popular vote, i don't know you have to just drop the whole tail? >>guest: after 2004 when the democrats were freaking out because they thought there would be an enduring republican majority and a couple of months later they settled in and figured out their message and it was obstruction against president bush but it worked for them politically. people are moving too fast, getting ahead themselves and they need to get the new congress in place and the republican bench we have talked about, they will have something to say about this so it is a little bit too much too soon but what is forcing this is the

fiscal cliff idea. we will talk about that on "the five" and we have an update on general petraeus. >>neil: if only mitt romney were more like bieber? justin? .. i always wait until the last minute. can i still ship a gift in time r christmas?

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>>neil: he got their support. president obama breaking three social media records with the re-election campaign including the most re-tweets previously held by justin bieber to market

watchers, often confused with justin on how republicans can play this game. >>guest: it hurt them. they look out of touch. they look bad and did bad. >>neil: how important is it, largely a young audience that uses this stuff? is that audience going to go largely to democrats anyway? >>guest: maybe not. everyone says this is the target they want to hit, hispanics, single women, women in general, young people, everyone talks about this great unscoffed marketplace for a candidate and twitter is the best way to reap them because they love going on television more -- twitter monday than television and the radio. >>neil: and you look to the movement of our society to online, anyway, and you are a big star online but the point is that is the way the world is going. do republicans just not grab it?

>>guest: at first, they came on but the problem was they were too little, too late because by the time they got the message, with the program, president obama was already there, and in full force and the campaign was full steam ahead and it took romney folks a while to watch up which is never a good idea. >>neil: part of a good ground game is a good blog game so you get immersed in the sites, in twitter particularly? >>guest: it is immediate. hip. it is fashionable. very young oriented. people think it is cool "twitter." the name is cool. it is better than texting. people love twitter. it is the communications to use. >>neil: the community is huge. at the last debate i spoke to a representative telling me how they coe lated. so, in the next campaign, and you know they are planning already, is it the guy or the

woman who has the edge the one figure this out? >>guest: starting tuesday at midnight. >>neil: canidates think if they are going to be on neil cavuto's show at 4:00 or talking to freidman on market watch and that covers it. what goes beyond that? >>guest: absolutely it is because of twitter, the appearance of being in step with the times. once it was television news or "laugh in" or "the tonight show" if you are on twitter and you are seen by young folk. facebook is good but twitter is it right now. would knows in four years. >>neil: do you agree with what jon is saying you can tweet us and let us know how you feel. i have thought with the sites and i have to say they miles

ahead of me telling in 1630 characters what they are doing, having a bagel right now. is it limited? >>guest: wrong, wrong, i learned about killing bin been on -- killing bin been on twit ter. -- killing bin laden on twitter. it is big news spreading, unfortunately things can be wrong or inaccurate, but twitter is fantastic for seeing things right new in real time space. >>neil: so, the woe to the candidate who doesn't figure it out? >>guest: defeat. defeat. defeat to the candidate who does not figure it out. >>neil: so this guy is the reason that republicans lost. republicans i thought you were not in the blame game? could have fooled me. maybe it is time to cut the

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♪ ♪ >> neil: finally, it hasn't even been a week since the election and i'm already reading it's all mitt romney's fault. all of it. bull. not the mitt romney i knew. maybe the mitt romney you knew or mitt romney many of the media wanted you to know but not the romney i knew. he lost, but it doesn't make him a loser. the election is done. you would think that an relenting media might finally cut the guy some slack. it covered many campaigns and many candidates in my life. i have known few are more decent than mitt romney and don't get me started on his wife ann. i'm not showing bias. but i'll show anger i won't see hi in him. he's too classy to be caddy. i am not. media seemed fixated on romney sometimes fixing positions over years didn't apply to the same standard to his opponent

shifting positions often over months. mitt romney can't evolve on immigration but barack obama can on issues like gay marriage. no, no, no. rip romney for contraception views that changed oaf decades. but say nothing about how in one remarkable week, the president contr contraception gw changed over days. mitt is eel because he shifted jobs to china but the president is not when auto companies he rescued are shifting jobs to china. perish the thought that the media would be fair in campaign. but to dump on romney and continue to kick the dog they made after the campaign, romney deserves better for simple decency. a man who loveed his wife and proved it. stood by his wife when she was very sick twice. didn't talk about it. a man who came to his

employees' aid when they needed it most and refused to discuss it on the campaign trail or have his people discuss it. a man attacked for getting rich after getting thousands at work, risking his own money, but the president is not so much mildly reprimanded for losing jobs after spending billions on stimulus and bail-out with our money. mitt is the twit because he can't carry a tune like to president, forgetting he brought down the house at a certain al smith dinner playing a good self-deprecating bob newhart. to the president. >> you are right. a campaign can require a lot of wardrobe changes. blue jeans in the morning. suits for lunch fundraising. sport coat for dinner. it's nice to finally relax and wear what ann and i wear around the house. [ laughter ] >> neil: you know, maybe little is made of the joke, the media can figure a tree falling in the park.

no one is there. by we can make a joke of old mitt. the globe media did hugely so, disproportionately so. according to a colleague, this is true, the president wasn't as funny, we like the president. we don't like mitt. none of this means romney isn't to blame for his defeat. perhaps he should have countered more, engaged latinos more, convinced women more. shown his heart more. i don't know. this much i do know. mitt romney deserves better from the media and the swarmy republican party to point finger than ever get a clue. romney wasn't the problem. they are. too wormy to admit it and too sure that romney offended some of the 47% relying on the government benefit. not once, not once questioning how the hell did it get a size 47% relying on government benefit? romney himself told me he was inelegant in his words. they were inept in their response of coverage. but why bother?

when it's easier to throw voters for a loss, to throw romney under the bus. after, agonizing defeat he raised the bar and showed more class. >> i have just called president obama to congratulate him on his victory. his supporters and his campaign deseven congratulations. -- deseven congratulations. it wish all of them well. particularly the president, first lady and their daughters. this is a time of great challenges for america and i pray the president will be successful in guiding our nation. >> very few words of praise for romney's grace. mitt is too decent to call them all disingenuous, pretennial, obnoxious, phonie phonies. pew fortunately but fortunately.